Image Source : KNN India
India's outward foreign direct investment (FDI) grew over two-fold to $6.7 billion in Q1 FY26, from $3.1 billion in the same period last year. It is a rising trend of Indian businesses looking for expansion abroad on a strategic scale.
Key Highlights:
- Foreign direct investment commitment is $14.6 billion in terms of loans, guarantees, and equity
- Equity investments had a 64 percent share in the outflows
- Best destinations: US, UAE, Germany, Mauritius, and Singapore
Major Contributors:
- Tata Communications led the way with renewed company guarantees and equity infusions
- JSW Neo Energy, Samvardhana Motherson, Aster DM Healthcare, and Bharti Airtel followed as well
- JSW Neo Energy acquired O2 Power's renewable platform
- LIC invested funds in its Sri Lanka joint venture
Strategic Context:
Experts see constrained domestic investment opportunities and the attraction of international financial centers as major reasons. Indian companies are leveraging parent credibility to raise capital and create long-term beachheads internationally.
Source: The Hindu BusinessLine
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